Alta Equipment Group (Alta Equipment Group) Gross Margin % : 25.50% (As of Dec. 2023)

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What is Alta Equipment Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alta Equipment Group's Gross Profit for the three months ended in Dec. 2023 was $133 Mil. Alta Equipment Group's Revenue for the three months ended in Dec. 2023 was $522 Mil. Therefore, Alta Equipment Group's Gross Margin % for the quarter that ended in Dec. 2023 was 25.50%.

The historical rank and industry rank for Alta Equipment Group's Gross Margin % or its related term are showing as below:

ALTG' s Gross Margin % Range Over the Past 10 Years
Min: 24.55 Med: 26.31 Max: 27.03
Current: 27.03

During the past 7 years, the highest Gross Margin % of Alta Equipment Group was 27.03%. The lowest was 24.55%. And the median was 26.31%.

ALTG's Gross Margin % is ranked worse than
60.91% of 990 companies
in the Business Services industry
Industry Median: 34.505 vs ALTG: 27.03

Alta Equipment Group had a gross margin of 25.50% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Alta Equipment Group was 0.00% per year.

Alta Equipment Group Gross Margin % Historical Data

The historical data trend for Alta Equipment Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alta Equipment Group Gross Margin % Chart

Alta Equipment Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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24.55

25.92

26.70

27.02

Alta Equipment Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															25.85	28.83	27.07	27.05	25.50

Competitive Comparison of Alta Equipment Group's Gross Margin %

For the Rental & Leasing Services subindustry, Alta Equipment Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alta Equipment Group's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Alta Equipment Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alta Equipment Group's Gross Margin % falls into.

Alta Equipment Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Alta Equipment Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	507.2	/	1876.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1876.8 - 1369.6)	/	1876.8
	=	27.02 %

Alta Equipment Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	133	/	521.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(521.5 - 388.5)	/	521.5
	=	25.50 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Alta Equipment Group (NYSE:ALTG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Alta Equipment Group had a gross margin of 25.50% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Alta Equipment Group Gross Margin % Related Terms

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Alta Equipment Group (Alta Equipment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Alta Equipment Group Inc (NYSE:ALTG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ALTGpA.PFD:USA

Address

13211 Merriman Road, Livonia, MI, USA, 48150

Website

https://www.altaequipment.com

Alta Equipment Group Inc is an integrated equipment dealership platform in the U.S. Its segments are Material Handling and Construction Equipment. The Material Handling segment is engaged in operations related to the sale, service, and rental of lift trucks in Michigan, Illinois, Indiana, New York, Virginia, and throughout the New England states whereas, the Construction Equipment segment is principally engaged in operations related to the sale, service, and rental of construction equipment in Michigan, Indiana, Illinois, Ohio, New York, Florida and throughout the New England States.

Executives

Zachary E. Savas	director	3250 W. BIG BEAVER ROAD, SUITE 544, TROY MI 48084
Ryan Greenawalt	director, 10 percent owner, officer: CEO, Chairman	C/O ALTA EQUIPMENT GROUP INC., 13211 MERRIMAN RD, LIVONIA MI 48150
Andrew P Studdert	director	PO BOX 66100 - WHQLD, CHICAGO IL 60666
Daniel Shribman	director	299 PARK AVENUE, NEW YORK NY 10171
B. Riley Financial, Inc.	10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Brf Investments, Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Craig Brubaker	officer: Chief Operating Officer	C/O ALTA EQUIPMENT GROUP INC., 13211 MERRIMAN ROAD, LIVONIA MI 48150
Anthony Colucci	officer: Chief Financial Officer	C/O ALTA EQUIPMENT GROUP INC., 13211 MERRIMAN RD, LIVONIA MI 48150
Katherine E White	director	ONE MAIN STREET, EVANSVILLE IN 47708
B. Riley Principal Investments, Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
James L Kempner	director	C/O LAZARD FRERES & CO. LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10020
Bryant R Riley	director	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Brc Partners Management Gp, Llc	10 percent owner	11100 SANTA MONICA BLVD SUITE 800, LOS ANGELES CA 90025
B. Riley Capital Management, Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Brc Partners Opportunity Fund, Lp	10 percent owner	11100 SANTA MONICA BLVD. SUITE 800, LOS ANGELES CA 90025